UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15438 / August 11, 1997
SEC v. Gregg Michael Brenner and Pamela Sue Topper
(N.D. Ga., Civil Action No. 1:97-CV-0607-GET)
The Securities and Exchange Commission announced today that on August
8, 1997, the Honorable G. Ernest Tidwell, United States District Judge for
the Northern District of Georgia, entered an order of permanent injunction
against defendant Gregg Michael Brenner ("Brenner"), enjoining him from
violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of
the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Brenner was
ordered to pay disgorgement in the amount of $62,029 plus $9,511 in
prejudgment interest within thirty days of the date of the judgment.
Brenner was further ordered to pay a civil penalty under the Insider
Trading Sanctions Act of 1984 in the amount of $9,715 within thirty days of
the date of the judgment.
Brenner consented to the relief without admitting or denying the
allegations set forth in a complaint filed by the Commission on March 10,
1997. The complaint alleged that on June 13, 1995, the General Counsel of
Medaphis Corporation ("Medaphis"), an Atlanta-based medical services
company, was in possession of material non-public information regarding
search warrants that were executed by the Federal Bureau of Investigation
("FBI") on two Medaphis offices in California. In violation of her
fiduciary duty to Medaphis, the general counsel disclosed the information
about the FBI investigation to her mother and co-defendant Brenner. Both
individuals then sold shares of Medaphis stock. The complaint further
alleged that Brenner also disclosed the FBI action against Medaphis to his
father and brother, who promptly sold their shares of Medaphis stock.
On June 15, 1995 at the close of trading, Medaphis issued a public
announcement about the FBI investigation of Medaphis. The price of
Medaphis stock dropped sharply the next day. By selling their shares of
Medaphis stock prior to the announcement, Brenner, along with his father
and brother, improperly avoided losses. For more information, see
Litigation Release 15280 (March 10, 1997) and Litigation Release 15301
(March 19, 1997).
======END OF PAGE 1======